Overview of JFSA’s 2026 Budget and Personnel Structure
On the 29th of this month, the Japanese Financial Services Agency (JFSA) unveiled its budget and personnel structure for the year 2026, signaling a significant overhaul of the country’s regulatory landscape.
Key Changes in Regulatory Structure
Among the notable changes is the reorganization of the Integrated Policy Bureau and the introduction of a new department, tentatively named the “Asset Management and Insurance Regulatory Bureau.” This restructuring also includes the formation of two specialized divisions focusing on cryptocurrency and cashless payment systems: the “Cryptocurrency Asset and Innovation Office” and the “Fund Settlement Monitoring Office.”
Revamp of the Cryptocurrency Sector
The revamp of the cryptocurrency sector sees the consolidation of several existing entities, including the “Cryptocurrency Asset and Innovation Advisory Office” and the “Settlement and Digital Financial Group Monitoring Office,” into the newly established office. This revamped department will take on crucial responsibilities such as:
- Monitoring market activities
- Enforcing disclosure requirements during sales
- Addressing systemic risks through adaptive regulation
New Tax Framework for Cryptocurrency Transactions
In tandem with these institutional changes, the JFSA also presented proposals for a new tax framework targeting cryptocurrency transactions. This move reflects the agency’s commitment to creating a robust investor protection system akin to that of the stock market, demonstrating a proactive approach to regulatory challenges and innovations in the financial technology sphere.
